Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 4 - Part II - The Market Forces of Supply and Demand - Problems and Applications - Page 87: 4

Answer

a) DVDs and TV screens = complements DVDs and movie tickets = substitutes TV screens and movie tickets = substitutes b) Costs decrease -> Increase in supply, fall in price, increase in QD c) Fall in price of TV screens -> Demand for DVDs (complements) will increase, increasing P and QD Fall in price of TV screens -> Demand for movie tickets (substitutes) will decrease, decreasing P and QD

Work Step by Step

Refer to diagram
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